Two apartment blocks in Da Nang city, which were coming up for sale in early 2023. (Photo: VNA) Such an exchange is vital for the centralised management of therealty sector, said Deputy Minister of Natural Resources and Environment LeMinh Ngan at a governmental meeting on August 21.
Ngan said a market for land use rights had taken shape but wasoperating unstably due to the absence of a centralised platform.
The launch of such a platform would help investors obtain realtyproperty more easily and provide the government with the toolsto control realty prices more effectively.
"The need to establish a platform on which land use rightscan be traded is urgent," noted Ngan.
Echoing Ngan, Deputy Prime Minister Tran Hong Ha said acentralised national platform for land use rights trading would create aconducive environment for private platforms.
What ministries had to do now to pave the way for the platform, Ha said, isto define its operational mechanics and its responsibilities towardsbusinesses, set the criteria for their admission to the platform, and establisha mechanism under which data among platforms can be transferred.
Prior to the meeting, the Ministry of Natural Resources and Environmentand the Ministry of Construction were working on a scheme to launch aplatform on which land use rights can be traded.
Nguyen Chi Thanh, Vice Chairman of the Vietnam Association of Realtors, saidthe exchange would serve as a centralised hub where land use rights can bebought, sold, and exchanged.
However, its significance would extend far beyond transactionfacilitation. It would pave the way for a real-time database whereby financialwatchdogs can monitor real estate transactions more effectively.
In the long term, it would also deliver a correction to the realty market andthwart any attempt to create speculative bubbles on it.
"A land use right exchange run by realtor associations is not new tomany countries, but not so be the one under the State's management," saidThanh.
The deputy chairman also said it would take a lot of time to getthe exchange up and running, given the amount of work required to establish itslegal framework and digital platform.
Tran Khanh Quang, director of the Viet An Hoa Real Estate Investment JSC,said the exchange would help unlock the full potential of the realtymarket by bringing sellers and buyers together in a single centralisedplatform.
Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, saidonly when the exchange is established as a State-authorised public serviceprovider could it gain popularity at the grassroots level.
He also said the existing platforms for realestate trading are functioning as private service providers.They have no authority to verify transactions. Verification fallsunder the competence of notarial offices.
"A land use right exchange will be infeasible unless itsties with land registration offices and notarial offices are established,"said Vo.
Realty expert Phan Cong Chanh said the real estate platforms andthe exchange will differ in that future property can be traded on the formerwhereas it would not be the case for future land use right onthe latter.
Mai Van Phan, director of the Department of Land Registration and InformationDatabase, said his department was working to lay the groundwork for theexchange and would soon report to the Prime Minister on its progress./.
VNA
